Europe (Jan – July) 2021

Malaysian Palm Oil Exports Performance to Europe Region
(Jan – July 2021)
A Review on MPO Performance

 Jan-July
2021
Jan-July
2020
Change
(Vol.)
Change
(%)
Jan-Dec
2020
Netherlands584,149670,385(86,236)(12.86)1,072,952
Italy183,383253,242(69,859)(27.59)439,053
Sweden60,65057,5023,1485.48103,440
Spain45,235130,067(84,832)(65.22)198,287
Denmark35,64927,7997,85028.2452,832
Greece33,7078,30225,405306.0316,006
Georgia15,40413,5071,89714.0519,470
Ukraine13,71744,816(31,098)(69.39)49,697
Germany13,22415,663(2,439)(15.57)21,462
United Kingdom5,2579,394(4,137)(44.04)15,505
Croatia4,9134,7341793.787,999
Belgium4,1851,5862,599163.813,174
Russia3,5307,228(3,698)(51.17)10,967
Romania2,2193,678(1,460)(39.68)6,559
Bulgaria9226628(5,706)(86.09)10,706
Switzerland7396677210.79971
Serbia389820(430)(52.50)816
Montenegro190354(165)(46.50)398
Macedonia173606(433)(71.51)817
Portugal161266(105)(39.53)328
Albania1361179(1,043)(88.48)1,599
France119158(40)(24.99)259
Serbia and Montenegro88088#DIV/0!216
Latvia73911(838)(91.99)1,794
Lithuania6061(0)(0.15)97
Norway472225111.6244
Bosnia and Herzegovina242400.0047
Moldova22162(140)(86.19)162
Austria60(60)(100.00)60
Cyprus18(18)(100.00)42
Estonia24(24)(100.00)24
Hungary1,000(1,000)(100.00)1,451
Poland469(469)(100.00)516
Slovenia46(46)(100)46
Malta0#DIV/0!
Grand Total1,008,3641,261,379(253,015)(20.06)2,037,797
Source: MPOB

From January to July 2021, Malaysian palm oil export to the Europe region was recorded at 1,008,364 MT, a decrease of 253,015 MT or by 20% from 1,261,379 MT recorded during the same period of 2020. The main reason for the drop was due tightening supply of palm oil, due to lowered production caused by labour shortages, and lower demand from the food manufacturing and biodiesel sectors.  Netherlands, Italy and Sweden are the three biggest destinations of Malaysian palm oil in the EU, with the three countries maintained their ranking. In Italy, consumption of palm oil is practically the same as the newly opened biofuels plants went into full operation to fulfil compulsory blending mandates this year. This plant has the capacity to process 750,000 MT of virgin vegetable oils and waste fats and oils on annual basis.

Greece recorded the largest increase in import volume, importing a total of 33,707 MT between January and July 2021, an increase of 306% compared to the same period of the previous year. This is due to the opening of the economy, and considering the current palm oil and sunflower oil price gap, palm oil is the most economical oil and thus is currently the preferred choice of edible oils in the country. Netherlands is the leading importer of Malaysian palm oil in this region with 584,149 MT, but this is a decrease of 86,263 MT or by 13% compared to the same period of 2020. This lower import volume can be attributed to the increased demand for Indonesian processed palm oil as the new tax structure enforced from January 2021 made their refined and processed products cheaper compared to Malaysia. Nevertheless, it is expected as the widening price spread between soybean oil and palm oil in the recent months will see a renewed interest in palm oil. Netherlands is expected to remain firm as a palm oil importing country as they are the main hub for palm oiler-exported to many countries in the Europe region.

Breakdown of MPO Exports (MT)
Exports of CPO and CPO certified by ISCC and RSPO into the Europe was the biggest component of Malaysian palm oil exports to Europe, comprising of 47.5% of the total. Higher uptakes are recorded mostly into Netherlands, Spain and Italy where palm oil is utilized in the energy sector. One of the reasons for the lower exports of Malaysian palm oil was due to competition from Indonesia since they changed their export duty structure for refined products. This is in addition to the discounts given by Indonesian suppliers as according to industry sources, Indonesian suppliers have been aggressively offering discounted prices of their refined products in the European market, thus reducing the intake of supplies from Malaysia.

Malaysia’s Export to Europe – Breakdown by Palm Products (MT)
 Jan-July 2021Jan-July 2020Change (Vol.)Change (%)
CPO214,803310,739(95,935)(30.87)
CPO FOR RSPO FROM SEGREGATED & INT SUSTAINABILITY N CARBON CERTIFICATION157,388179,306(21,918)(12.22)
CPO INTERNATIONAL SUSTAINABILITY AND CARBON CERTIFICATION106,741232,498(125,757)(54.09)
RBD PS106,187126,113(19,926)(15.80)
PAO86,47587,127(652)(0.75)
RBD PL68,51457,93110,58218.27
PFAD60,25247,00513,24828.18
PMF / RBD PMF47,54752,305(4,758)(9.10)
RBD PO38,71571,493(32,778)(45.85)
RBDPS FOR RSPO FROM SEGREGATED27,64820,2247,42436.71
NBD PL27,32330,096(2,773)(9.21)
RBDPO FOR INTERNATIONAL SUBSTAINABLE & CARBON CERTIFICATION14,89312,4812,41219.33
Others51,87834,06317,81552.30
GRAND TOTAL1,008,3641,261,379(253,015)(20.06)
Source: MPOB

 

Chart 1 : Breakdown of MPO Exports (MT)

 
Source: MPOB

For more info please contact Mr Izham: izham@mpoc.org.my

*Disclaimer: This document has been prepared based on information from sources believed to be reliable but we do not make any representations as to its accuracy. This document is for information only and opinion expressed may be subject to change without notice and we will not accept any responsibility and shall not be held responsible for any loss or damage arising from or in respect of any use or misuse or reliance on the contents. We reserve our right to delete or edit any information on this site at any time at our absolute discretion without giving any prior notice.

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